The Gift Clause

I was just posting a comment with reference to the “Gift Clause” of the Arizona State Constitution, and realized it would be helpful to have a standalone post to which to link. So here it is:

Article 2, Section 7. Gift or loan of credit; subsidies; stock ownership; joint ownership

Neither the state, nor any county, city, town, municipality, or other subdivision of the state shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation, or become a subscriber to, or a shareholder in, any company or corporation, or become a joint owner with any person, company, or corporation, except as to such ownerships as may accrue to the state by operation or provision of law or as authorized by law solely for investment of the monies in the various funds of the state.

And the anti-subsidy clause of the Scottsdale City Charter:

Article 1, Section 3O:

The city shall not give or loan its credit in aid of, nor make any donation, grant or payment of any public funds, by subsidy or otherwise, to any individual, association, or corporation, except where there is a clearly identified public purpose and the city either receives direct consideration substantially equal to its expenditure or provides direct assistance to those in need.

You may also like